Devyani International Q3 Results Review: Motilal Oswal Retains 'Buy' On The Stock, Sees 27% Upside— Here's Why

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Motilal Oswal Report

Devyani International Ltd.’s consolidated revenue grew 54% YoY (in line) in Q3 FY25, led by a recent acquisition in Thailand. India revenue was up 10% YoY, despite 20% YoY store expansion, which was offset by weak samestore sales growth across brands.

KFC revenue grew 9% YoY, supported by 17% store expansion, though offset by a 4% decline in same-store sales (-3% for Sapphire). Pizza Hut revenue rose 6% YoY, with 14% new store additions, while SSSG declined 0.8% YoY (+5% for Sapphire). Costa Coffee’s revenue rose 30% YoY, with 36% YoY store addition and 5% SSSG.

India reported operating margin was flat YoY at Rs 1.2 billion and margin contracted 140bp YoY to 13.9%, owing to operating deleverage. KFC’s ROM contracted 170bp YoY to 17.2% (18.2% for Sapphire) and PH’s ROM contracted 400bp YoY QoQ to 2.1% (4.7% for Sapphire).

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